|Does The Import Warehouse take trade-ins? Go to: Top|
Yes. This is one of the most commonly asked questions. We want to make your car-buying experience as simple as possible. Part of that involves disposing of your current car. We have assembled a list of commonly asked questions regarding trade-in procedures and pricing.
Am I better off selling my old car myself? Go to: Top
In some cases, yes. Depending on the type of car you have, it may make sense to sell it yourself. Check to see what a similar car is selling for in the newspaper and online classifieds, then fill out the Trade-In inquiry form below. Generally, the trade-in value will be lower than what they are advertised at. When perusing the classifieds you will often see a dramatic range of prices for a car of similar make, model, equipment, and miles. The people who have the lowest price will sell their cars, while the higher priced ones will keep those cars for a long time. Do you call the ad with the highest price first?
If you decide to sell your old car yourself, be objective. Most of us grow attached and familiar with our cars. Step out of your "owner" role, and see your old car as a prospective buyer would. Are there scratches, windshield chips, and other cosmetic and mechanical issues? De-personalize your car; a buyer cannot picture themselves in a car with someone else’s bumper stickers and rearview mirror ornament.
What are the pros and cons to trading my car in? Go to: Top
- Simplicity. There is no need to hassle with advertising, repeatedly cleaning the car, and showing your car.
- Safety. You avoid the safety concerns of having strangers come to your house and the concerns of check fraud.
- Tax Break. When you trade in, your old car acts as a tax break in that you are only required to pay sales tax on the difference between your trade-in and the car you are purchasing. For example, if you are trading in a car worth $15,000 and buying a car worth $20,000, you are only taxed on the $5000 difference. With a sales tax rate of 7.2%, that is a savings of $1,080. Taking this into account will make the difference between trading in your old car and selling it much smaller.
- Lower Price. A trade-in value will always be lower than the retail price. How much lower depends on the car.
How do you determine the trade-in value? Go to: Top
We use several sources that tell us how much a similar car is selling for between dealers. This is often termed a wholesale price and is affected by make, model, miles, options, condition, and even color. Objectively, the trade-in value is what we would pay to buy the same car from a wholesale source. Since dealers purchase their car from the same sources, paying more than that (as some dealers will do) can only be accomplished by inflating the price of the car you are considering buying.
Why is there a difference between your trade-in value and the values in Edmunds, Kelly, or NADA?
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These guides are only guides. With the variables of location, availability, demand, and more, no guide book can be completely accurate. The Import Warehouse prices are hundreds, often thousands, less than the retail prices listed by these guides. Similarly, the trade-in value will vary by hundreds, sometimes thousands, depending on the marketplace.
Do all dealers use a similar method? Go to: Top
No. Most dealers use what is referred to as a Buy Bid method. Your dealer (who has the car you want to purchase) will call another dealer and describe the car being traded-in. The other dealer then makes an offer, or Bid, on your trade-in. Then, your dealer offers you that amount (or less if they are looking to make a profit on your car).
What do I need to trade in my old car? Go to: Top
If you do not have the car financed, you simply need the title for the car. If you and someone else are listed as owners, both parties will need to sign over the title. If the car is financed, the finance company will have the title. You will need to provide us with the name and phone number of the finance company as well as your account number. In some cases, we can even take a leased car on trade.
With the following basic questions, we can provide an estimate of trade-in value, usually within a 5-10% range. How many dealers are willing to do that!?!? We will need to physically inspect the vehicle to provide an exact value.